Q2 Earnings: Square, Shopify, PayPal and Blackbaud

As we come to the halfway point for the year, momentum for fintechs is still going strong and cashless continues to dominate the marketplace. The recent trend towards mergers and acquisitions in our thriving ecosystem has paved the way for some impressive growth numbers, while the digital buzz continues to prime the marketplace for innovation and IPOs.

Adding to the roster of publicly traded payment facilitators, Phreesia announced the closing of its IPO last week (July 22). The public offering price was $18.00 per share, with total gross proceeds to Phreesia of approximately $140.6 million, according to the press release.

“It should be easier than ever to start a business, but entrepreneurship is still too hard,” said Tobi Lütke, Shopify’s CEO. “Our job is to keep innovating on behalf of entrepreneurs so they can compete in an ever-changing retail landscape. Every announcement we made at Unite, especially the Shopify Fulfillment Network, is designed to democratize commerce and make it easier for our merchants to reach for independence.”

For Q2 2019:

Total revenue in the second quarter was $362.0 million, a 48% increase from the comparable quarter in 2018.

Subscription Solutions revenue grew 38% to $153.0 million.

Merchant Solutions revenue grew 56%, to $208.9 million.

GMV for the second quarter was $13.8 billion, an increase of $4.6 billion, or 51%, over the second quarter of 2018.

Gross profit dollars were $204.8 million, or 50% growth compared with $137.0 million recorded for the comparable quarter last year.

Net loss for the second quarter of 2019 was $28.7 million, or $0.26 per share, compared with $24.0 million, or $0.23 per share, for the second quarter of 2018.

At June 30, 2019, Shopify had $2.01 billion in cash, cash equivalents and marketable securities, compared with $1.97 billion on December 31, 2018.

“PayPal delivered another solid quarter, and consequently we are raising EPS guidance for the year. Venmo’s momentum continues, with 70% growth in total payment volume to $24 billion. And earlier this month, Xoom expanded to 32 new send markets throughout Europe,” said Dan Schulman, president and CEO of PayPal.

For Q2 2019:

Total active accounts raised to 286 million (up 17%).

Engagement per active account is also up 9% to 39 times per year.

Revenue grew 12% on both a spot and foreign currency-neutral basis to $4.31 billion.

The company reported a GAAP operating margin of 16.4%, with a non-GAAP operating margin of 23.2%.

“This year marks our 15th year as a Nasdaq listed public company, which is a testament to the incredible team we have and their dedication to drive powerful social impact and create shareholder value,” said Mike Gianoni, Blackbaud’s president and CEO. “We continued to drive market-specific innovation across our vertical markets.”

For Q2 2019:

Total GAAP revenue is up 5.6% at $225.6 million, with $208.5 million in GAAP recurring revenue.

GAAP recurring revenue is up 8.2%.

Total non-GAAP revenue is up 5.5% at $226.4 million, with $209.2 million in non-GAAP recurring revenue.

Non-GAAP recurring revenue is up 8%.

Non-GAAP organic recurring revenue increased 5%.

GAAP net income was $7.1 million, with GAAP diluted earnings per share of $0.15, up $0.01.

Non-GAAP net income was $31.9 million, with non-GAAP diluted earnings per share of $0.66, down $0.03.